A quarter (24%) of treasurers in Taiwan are currently making payments and collecting receipts through an offshore renminbi (CNY) account, a poll by Bank of America Merrill Lynch and SunGard has found.
Meanwhile, a further 29% of Taiwan-based treasurers indicated that they are interested in opening a CNY account.
Significantly, the percentage of Taiwanese companies making payments and collecting receipts through a CNY account is greater than that of Hong Kong (23%), China (20%), Singapore (18%) and Japan (17%).
The regional average for companies in Asia-Pacific using CNY is 16%.
The survey, entitled the Asia Pacific Treasury Management Barometer, also found that 72% of Taiwan-based treasurers see cash visibility as a primary focus in the coming 12 to 24 months, while nearly half (47%) identify rationalisation of bank accounts as a key priority. Some 11% of Taiwanese treasurers use hosted or cloud-based treasury management software.
“Taiwan treasurers will increasingly embrace CNY as a strategic currency for both payments and receipts,” said Kitty Yen, Bank of America Merrill Lynch’s head of treasury sales for Taiwan. “Taiwan companies are also among the region’s progressive as measured by cash visibility, account rationalisation and technology adoption.”
Sally Percy is editor of The Treasurer